Series 5: Loan Structure and Documentation Considerations

PostDecember 29, 2014

The Commercial Real Estate Lending Decision Processand the courses in the curriculum are products of The Risk Management Association.

The purpose of this series is to help the student assess various borrowing structures, identify issues involving owner occupied lending, determine loan documentation and due diligence considerations and to identify key components of CRE Loan structure.

Duration: Approximately 3.5 hours.

Audience: Commercial lenders and credit analysts who are not real estate specialists but who need to know more about assessing real estate risk..

Learning Objectives: After completing this course, students will be able to:

Identify the strategic advantages and disadvantages of various forms of business ownership

Identify the primary tax returns used for each borrowing entity and the sections that provide valuable financial information for loan underwriting

Identify the ways cash moves among business entities

Identify the decision-making process for an owner-occupant when either purchasing or leasing a building

Identify repayment sources, their hierarchy, and their co-dependence for owner-occupied loans

Determine how to structure owner-occupant loans to address unique attributes such as holding company structure, property condition, and valuation issues

Identify key elements in the SBA 504 program to finance owner-occupied real estate

Identify the key instruments necessary to document a loan transaction and perfect a lien on collateral